By Liam Mo and Brenda Goh
BEIJING (Reuters) – Apple has been dethroned as China’s biggest smartphone seller in 2024, with local rivals Vivo and Huawei overtaking the iPhone maker after its annual shipments in the country fell 17%, research firm Canalys showed in Thursday.
It was Apple’s (NASDAQ: ) biggest annual sales decline in China and included declines in all four quarters, including a 25% drop in the most recent quarter, according to the data.
For the full year, budget smartphone maker Vivo took 17% of the market share in China, followed by top rivals Huawei at 16% and Apple at 15%, showing the increasing sales pressure domestic manufacturers are facing in one of their biggest global markets. markets.
The decline also indicates how factors such as the lack of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is not available, are affecting Apple’s competitiveness.
“This marks Apple’s worst annual performance in China,” Canalys analyst Toby Zhu said.
“Apple’s top market position faces multiple challenges: Huawei’s continued flagship releases, the proliferation of domestic foldable phones in high-end segments, and Android brands like Xiaomi (OTC: ) and Vivo building consumer loyalty through technological innovation,” he said.
Apple previously enjoyed four years of consistent growth after US sanctions placed Huawei on the entity list in 2019, limiting its access to US technology.
But Huawei made a strong comeback in the premium segment from August 2023, when it launched new phones with locally manufactured chipsets. The Chinese company recorded a 24% increase in shipments in the fourth quarter.
Apple did not immediately respond to a request for comment.
The iPhone maker has turned to rare discounts to boost sales. The company launched a four-day promotion in China from January 4 to 7, offering price cuts of up to 500 yuan ($68.50) on its iPhone 16 models through its official channels.
Major Chinese e-commerce platforms followed suit with their own promotions. Alibaba (NYSE: ) marketplace Tmall announced discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices.
Among the top five vendors, the mostly budget-focused Xiaomi saw the biggest growth with a 29% increase in shipments in the fourth quarter, while Oppo and Vivo posted gains of 18% and 14% respectively, according to Canalys data.
Annual smartphone shipments in China in 2024 rose 4% year-on-year to 285 million units.
